TSX/NYSE/PSE: MFC SEHK:945
C$ unless otherwise stated
TORONTO, Feb. 10, 2017
/CNW/ - Manulife Financial Corporation ("Manulife") today announced
that it does not intend to exercise its right to redeem all or any
of its currently outstanding 10,000,000 Non-cumulative Rate Reset
Class 1 Shares Series 7 (the "Series 7 Preferred Shares") (TSX:
MFC.PR.H) on March 19, 2017. As a
result, subject to certain conditions described in the prospectus
supplement dated February 14, 2012
relating to the issuance of the Series 7 Preferred Shares (the
"Prospectus"), the holders of the Series 7 Preferred Shares have
the right, at their option, to convert all or part of their Series
7 Preferred Shares on a one-for-one basis into Non-cumulative
Floating Rate Class 1 Shares Series 8 of Manulife (the "Series 8
Preferred Shares") on March 19, 2017.
A formal notice of the right to convert Series 7 Preferred
Shares into Series 8 Preferred Shares will be sent to the
registered holders of the Series 7 Preferred Shares in accordance
with the share conditions of the Series 7 Preferred Shares. Holders
of Series 7 Preferred Shares are not required to elect to convert
all or any part of their Series 7 Preferred Shares into Series 8
Preferred Shares. Holders who do not exercise their right to
convert their Series 7 Preferred Shares into Series 8 Preferred
Shares on such date will retain their Series 7 Preferred Shares,
unless automatically converted in accordance with the
conditions below.
The foregoing conversion right is subject to the conditions
that: (i) if, after March 6, 2017,
Manulife determines that there would be less than 1,000,000 Series
7 Preferred Shares outstanding on March 20,
2017, then all remaining Series 7 Preferred Shares will
automatically be converted into an equal number of Series 8
Preferred Shares on March 19, 2017,
and (ii) alternatively, if, after March 6,
2017, Manulife determines that there would be less than
1,000,000 Series 8 Preferred Shares outstanding on March 20, 2017, then no Series 7 Preferred Shares
will be converted into Series 8 Preferred Shares. In either case,
Manulife will give written notice to that effect to any registered
holders of Series 7 Preferred Shares affected by the preceding
minimums on or before March 12,
2017.
The dividend rate applicable to the Series 7 Preferred Shares
for the 5-year period commencing on March
20, 2017, and ending on March 19,
2022, and the dividend rate applicable to the Series 8
Preferred Shares for the 3-month period commencing on March 20, 2017, and ending on June 19, 2017, will be determined and announced
by way of a news release on February 21,
2017. Manulife will also give written notice of these
dividend rates to the registered holders of Series 7 Preferred
Shares.
Beneficial owners of Series 7 Preferred Shares who wish to
exercise their right of conversion should instruct their broker or
other nominee to exercise such right before 5:00 p.m. (Toronto time) on March
6, 2017. Conversion inquiries should be directed to
Manulife's Registrar and Transfer Agent, CST Trust Company, at
1-800-387-0825.
Subject to certain conditions described in the Prospectus,
Manulife may redeem the Series 7 Preferred Shares, in whole or in
part, on March 19, 2022 and on
March 19 every five years thereafter
and may redeem the Series 8 Preferred Shares, in whole or in part,
after March 19, 2017.
The Toronto Stock Exchange ("TSX") has conditionally approved
the listing of the Series 8 Preferred Shares effective upon
conversion. Listing of the Series 8 Preferred Shares is subject to
Manulife fulfilling all the listing requirements of the TSX and,
upon approval, the Series 8 Preferred Shares will be listed on the
TSX under the trading symbol "MFC.PR.S".
The Series 7 Preferred Shares and the Series 8 Preferred Shares
have not been and will not be registered in the United States under the United States
Securities Act of 1933, as amended (the "Securities Act"), or the
securities laws of any state of the
United States and may not be offered, sold or delivered,
directly or indirectly in the United
States or to, or for the account or benefit of, a "U.S.
person" (as defined in Regulation S under the Securities Act)
absent registration or an applicable exemption from such
registration requirements. This press release does not constitute
an offer to sell or a solicitation to buy securities in
the United States and any public
offering of the securities in the United
States must be made by means of a prospectus.
About Manulife
Manulife Financial Corporation is a leading international
financial services group that helps people achieve their dreams and
aspirations by putting customers' needs first and providing the
right advice and solutions. We operate as John Hancock in the
United States and Manulife elsewhere. We provide
financial advice, insurance, as well as wealth and asset management
solutions for individuals, groups and institutions. At the end of
2016, we had approximately 35,000 employees, 70,000 agents, and
thousands of distribution partners, serving more than 22 million
customers. At the end of 2016, we had $977
billion (US$728 billion) in
assets under management and administration, and in the previous 12
months we made almost $26 billion in
payments to our customers. Our principal operations are in
Asia, Canada and the
United States where we have served customers for more than
100 years. With our global headquarters in Toronto, Canada, we trade as 'MFC' on the
Toronto, New York, and the Philippine stock exchanges
and under '945' in Hong Kong.
SOURCE Manulife Financial Corporation